State & Local
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May 08, 2024
NJ Utility Co. Appeals Tax Assessment On Labor Fees
A utility company based in New Jersey asked the state tax court to set aside a roughly $342,000 sales and use tax assessment, arguing that the Division of Taxation included labor charges that were not taxable.
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May 08, 2024
La. House OKs Constitutional Convention For Tax Overhaul
The Louisiana House of Representatives approved legislation that would call a convention to rework some elements of the state constitution, including moving certain tax provisions into state statutes to give lawmakers more flexibility to address a looming budget deficit.
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May 08, 2024
A Foley Hoag Co-Chair Joins Litigation Firm As Name Partner
Litigation and dispute resolution firm Elliott Kwok Levine & Jaroslaw LLP will operate under a new name after welcoming as its newest name partner a former federal prosecutor who most recently co-chaired Foley Hoag LLP's white-collar crime and government investigations practice.
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May 08, 2024
Va. Biz's Forklift Exempt From Use Tax, Commissioner Rules
A forklift owned by a business engaged in electronics dismantling and recycling qualifies for a use tax exemption because it was used for industrial processing, the Virginia tax commissioner said.
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May 08, 2024
Va. Tax Head Denies Exceptions For Receivables Factoring
The Virginia tax commissioner said a corporation that sold invoices to another entity doesn't qualify for an expense exception for factoring costs because it was unable to prove there was a valid business purpose other than the avoidance of tax.
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May 08, 2024
Colo. Lawmakers Approve Film Tax Credit Extension
Colorado's film production tax credit would run through 2031 and make changes to the credit under legislation passed Wednesday by the state Senate and headed to the governor.
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May 08, 2024
Mass. Dept. Says Part Of Bundled Phones' Value Not Taxable
Consumers buying discounted mobile phones in Massachusetts as part of a bundled package owe sales tax only on the amount actually paid, the state tax department said, responding to a 2023 court ruling.
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May 08, 2024
Colo. Lawmakers OK Historic Structure Tax Credit Extension
Colorado's tax credit for rehabilitation of historic structures would be extended and apply to structures as young as 30 years old under legislation approved by the Senate and headed to the governor.
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May 07, 2024
LA Cannabis Co. Owes $216K In Taxes, City Says
Los Angeles has slapped a Venice cannabis shop with a lawsuit accusing it of shirking a more than $200,000 tax obligation, asking a state court for to force the dispensary to pay up.
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May 07, 2024
SD Unapportioned Use Tax Unconstitutional, US Justices Told
South Dakota's imposition of an unapportioned use tax on a construction company's movable construction equipment — some of which was used in the state for one day — violates the fair apportionment requirement of the commerce clause, the company told the U.S. Supreme Court on Tuesday.
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May 07, 2024
Colo. House OKs Tax Credits For Gifts Through Intermediaries
Colorado would allow income tax credits for charitable gifts made through certain intermediaries instead of directly to qualifying organizations under legislation approved Tuesday by the state House of Representatives.
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May 07, 2024
Calif. OTA Backs Excluding Dealership Sale From Sales Factor
A business that operates car dealerships rightly had the gross receipts from its sale of an Alaskan dealership excluded from its California sales factor, the California Office of Tax Appeals ruled.
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May 07, 2024
Ore. Tax Court Drops Values Of Residential Parcels
The Oregon Tax Court ruled that the real market values of two parcels teed up for a residential subdivision should be lowered after agreeing with the owner's comparable sales study and development cost analysis.
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May 07, 2024
Colo. Legislature OKs Apprenticeship Tax Credit
Colorado would create a refundable income tax credit for the creation of apprenticeship programs, up to $12,600 per apprentice per year, under a bill passed by the state Senate.
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May 07, 2024
Colo. House OKs Conservation Easement Tax Break Extension
Colorado would extend its conservation easement tax credit through 2031 and raise its statewide annual cap on available credits under legislation approved Tuesday by the state House of Representatives.
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May 07, 2024
Calif. Credit For Tax Paid Doesn't Apply To Couple, OTA Says
A couple is not entitled to a credit against their California tax liability for capital gains tax paid in Virginia, even if the tax was paid in error, the California Office of Tax Appeals ruled.
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May 07, 2024
Mo. Laundromat May Owe Sales Tax On Customer Payments
A Missouri laundromat wouldn't need to remit sales tax on payments made by its customers for use of its laundry machines if the company already paid sales tax when purchasing the machines, the state Department of Revenue said in a letter ruling.
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May 07, 2024
Calif. Tax Owed By Ex-President Of Delaware Corp., OTA Says
The former president of a corporation that was once based in California is the responsible party for the corporation's sales tax liability, the state Office of Tax Appeals ruled.
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May 07, 2024
Colo. Lawmakers OK Tax Credit For Job Training Costs
Colorado would create an income tax credit for expenses associated with facility upgrades and purchases of equipment for training programs designed to alleviate staffing shortages as part of a bill passed by lawmakers that goes next to Democratic Gov. Jared Polis.
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May 07, 2024
Tenn. To Let Cities Exempt Food From Sales Tax
Tennessee will allow municipalities that have adopted a city sales tax rate to exempt retail sales of food from the local tax under a bill signed by the governor.
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May 07, 2024
Fla. Net Revenue Through March Beats Estimates By $468M
Florida's net revenue collection from July through March was up $468 million over budget estimates, the state Office of Economic and Demographic Research reported.
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May 07, 2024
Colo. Senate Approves Property Tax Cuts
Colorado would extend temporary property tax rate reductions into 2024 and set lower rates for future years under bipartisan legislation passed Tuesday by the state Senate that is forecast to save property owners nearly $1 billion in its first year if enacted.
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May 07, 2024
ITFA Protects Apple Music From City Tax, La. Board Says
New Orleans' attempt to impose sales tax on Apple Music streaming subscriptions is blocked by a federal law that prohibits discriminatory taxes on electronic commerce, the Louisiana Board of Tax Appeals ruled.
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May 07, 2024
Ala. Sees Dip In Net Revenue Through April
Alabama collected roughly $23.49 million less in net revenue from October through April than it did during the same period last fiscal year, the state Department of Revenue reported.
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May 07, 2024
Calif. Solar Co.'s Tax Assessment Not Time Barred, OTA Says
The increased tax assessment on a California solar lighting company was not barred by the statute of limitations because the company and government failed to tell the state about the federal adjustment, the state Office of Tax Appeals ruled.
Expert Analysis
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Kentucky Tax Talk: What's Next For Bourbon Barrel Revenue
By creating the Bourbon Barrel Taxation Task Force to help Kentucky regain a competitive edge in the state’s signature industry, the General Assembly has recognized the need to lessen the burden on distillers without causing detrimental harm to local revenue, say attorneys at Frost Brown.
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Tax Credits For Empty Garages In Calif.: SALT In Review
RSM's David Brunori offers his thoughts on noteworthy state and local tax news, starting with California's planned tax credits for households without cars.
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CORRECTED: New Tax Credits For Renewables Should Offer Investors Relief
The Inflation Reduction Act's changes to tax credits for renewable energy projects should finally liberate tax equity investors from the restraints of the complex and onerous federal anti-abuse regime, says Kay Hobart at Parker Poe. Correction: Because of an editing error, a previous version of this article incorrectly characterized tax enforcement regimes in North Carolina and other states. This error has been corrected.
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P.L. 86-272 And Tax Cuts Here And There: SALT In Review
From California's interpretation of P.L. 86-272 to calls for tax cuts in Idaho and North Dakota, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Unpacking The New Stock Buyback Tax And Its Exceptions
Xenia Garofalo and Kyle Colonna at Eversheds Sutherland discuss provisions of the recently enacted tax on corporate stock repurchases, how its exceptions may be applied and what companies should consider when evaluating the cost of new or existing programs.
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Mass. Retroactivity, Still, And Calif. Gases: SALT In Review
From Massachusetts' continuing pursuit of a retroactive tax to a California proposal to fight greenhouse gas emissions at the expense of the wealthy, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Ohio Tax Talk: Telework Case Shows Tax Grounds Eroding
The Ohio Supreme Court case Schaad v. Alder, which considers a city's right to temporarily tax remote workers during the pandemic, highlights how sustained increases in telework may undermine the rationale allowing municipalities to tax employee income regardless of their residence, say Yazan Ashrawi and Raghav Agnihotri at Frost Brown.
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Digital Ads In NM And Farms In NJ: SALT In Review
From New Mexico's proposed rules on digital advertising to New Jersey's move toward relief for farmers, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Senate Cannabis Bill May Give Some Cos. A Competitive Edge
Though the recently introduced Cannabis Administration and Opportunity Act is unlikely to pass, it provides a bellwether for federal legalization, with a robust regulatory framework that would offer large food and beverage companies a structural advantage and poise multistate cannabis operators for further growth, say attorneys at Perkins Coie.
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NY's Out-Of-State Play And Ala.'s Add-Back: SALT In Review
From New York state's move toward taxing out-of-state entities' partnership sales to Pfizer's victory against Alabama's add-back rule, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.
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Lessons For Federal Lawmakers As Calif. Alters Cannabis Tax
California recently eliminated a cultivation tax that had for years burdened the state’s licensed cannabis market, providing important lessons for federal lawmakers on cumbersome regulations and unduly high taxes as they debate legalization, says Raza Lawrence at Zuber Lawler.
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Texas Tax Talk: Ruling May Erode Pro-Taxpayer Presumption
Following the recent Texas Supreme Court opinion in Hegar v. Health Care Service, the state comptroller may try to limit the utility of a long-standing presumption that ambiguous tax statutes must be construed strictly against the taxing authority and liberally for the taxpayer, say attorneys at Baker Botts.
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MTC Activity And Tax Rebates All Over: SALT In Review
From the highly active Multistate Tax Commission to tax rebates seemingly everywhere, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.